Beyond the smartphone. Because small doesn't have to be crappy.

Olympus XZ-2 iHS

Olympus XZ-2 iHS

With a more-than-adequate 12 megapixels, flash hot shoe, and a super-fast (at the wide end) f 1.8 lens, which has a 28mm–112mm zoom, this is about as good as it gets for pro-grade pocket-sized cameras under a grand. Notable features include a multi-directional, articulated LCD screen and turnable ring around the lens, like an SLR would have for focusing, that can be customized to do any number of things. $599.99

Canon Powershot N

Canon Powershot N

Super-small — you could almost wear it as a medallion if you had Flavor Flav aspirations — Canon's N is essentially built to be a higher-end version of your iPhone camera, giving you "real" camera quality but with its own built-in WiFi, which allows you to beam images to your phone or computer. Image quality isn't as good as one of the "pro" point-and-shoots, but the N isn't meant to be a pro camera; it's an easy-to-use, on-the-go snapshot camera for people who want better than your standard cell-phone pics. $299.99